Sahara, the smallest player in the market with a five-aircraft fleet, may have backed out of the fare war it started due to financial implications. But according to the chief general manager of Sahara Airlines, Kapil Kaul, the plan was to keep the low fares only till July 1 when the peak summer season ends.

Sahara will now charge Rs 4,045 instead of the discounted fare of Rs 3,333 for Delhi-Mumbai-Bangalore. On the Mumbai-Lucknow sector, a Sahara ticket will cost Rs 6,725, up from Rs 5,999.

On the Mumbai-Goa route, the airline will charge the original fare of Rs 2,410 instead of the discounted one of Rs 2,222. The Delhi-Goa fare now stands at Rs 6,555 as against the discounted fare of Rs5,999.

Sahara Airlines mantains that the fare discounts have served the airline well. The airline's market share increased by 2 per cent and its passenger load factor (PLF) grew by 18 per cent while the airline offered its discounts.

Besides, Sahara's fares forced a change of pace in a cartel-like domestic airline market and sluggish economy.

"Sahara, a five-aircraft airline, has stirred the market. We have forced the bigger airlines such as IA and Jet to follow-up our act by slashing fares and offering value-added schemes to customers," said Kaul.

Jet Airways, after resisting temptation initially, slashed fares to match Sahara's Rs 4,111 on the Delhi-Mumbai sector. But the biggest salvo was fired by Indian Airlines. The airline announced the lowest-ever fare of Rs 3,800 on this route, effective July 1.

Jet Airways and Sahara Airlines claim that they do not have any intention of matching IA's fare as they consider it "unsustainable".

However, action on this sector is expected to continue. SaharaAirlines has plans to add one more frequency on the Delhi-Mumbai sector. Coupled with the IA shuttle service and Jet Airways' flights, the additional frequency from Sahara will result in a total of 22 flights daily between Delhi and Mumbai.

IA on Thursday advertised its offer of a free ticket for any destination abroad for passengers who fly seven times with the airline. Sahara has offered consumer durables to its customers for a loyalty stretching to five journeys.